Did Uber just win the taxi war?
Published 23-NOV-2015 10:22 A.M.
|
2 minute read
Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.
In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.
The below articles were written under our previous business model. We have kept these articles online here for your reference.
Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.
Click Here to View Latest Articles
In a major shake-up to the taxi industry in Australia, New South Wales is set to legalise the use of Uber X in the state.
According to a report in The Daily Telegraph the government is set to outline proposed legislation to legalise the use of the service [$].
The ride-sharing app has courted controversy and ignited a war of words in the state and other jurisdictions, with the taxi industry arguing that the service is unfairly undercutting it and is only able to do so because it is not required to pay registration or ongoing training fees.
While the use of the Uber app to order regular taxis is legal, it is the use of private citizen drivers with Uber X which has caused controversy as prices for the service are often cheaper than using a regular taxi.
According to the Daily Telegraph, the full changes will be outlined later today but are expected to include forcing Uber X drivers to pay registration fees while the incumbent taxi industry will be offered compensation.
Technology in the taxi industry
The taxi industry in Australia traditionally has been slow to adopt the disruption the likes of Uber have already wrought, without even being illegal.
However, it hasn’t been helped by legislators and regulators.
Earlier this month the industry’s attempt to build an Uber-esque app, iHail, were dealt a blow by the Australian Competition and Consumer Commission.
iHail was a joint venture app between several taxi operators, combining their databases and systems into one app to make it easier for people to order a taxi from their smartphone.
Initial participants were to be Yellow Cabs, Silver Top Taxi Service, Black and White Cabs, Suburban Taxis, and Cabcharge.
However, the ACCC looked dimly upon the plan, saying that the app would be outside the spirit of competition in the industry.
“The ACCC considers that the ihail app would have a significant impact on competition in the taxi industry, which could impact prices and quality of service,” ACCC chairman Rod Sims said.
“The ACCC accepts this app would provide a more convenient way for consumers to book taxi services, but in the draft determination the ACCC takes the view that this comes at too big a cost to competition
“If it becomes the dominant booking app, it may also reduce competition by impacting the commercial viability of existing apps operated by individual taxi networks, as well as those operated by third parties such as goCatch and ingogo.”
More information as it comes to hand
General Information Only
S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.
Conflicts of Interest Notice
S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.
Publication Notice and Disclaimer
The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.
Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.
This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.